Question: ABC Inc. XYZ Inc. Expected Return 9% 12% Standard deviation 16% 22% The correlation coefficient between the two stocks is 0.10 Calculate the expected return

 ABC Inc. XYZ Inc. Expected Return 9% 12% Standard deviation 16%

ABC Inc. XYZ Inc. Expected Return 9% 12% Standard deviation 16% 22% The correlation coefficient between the two stocks is 0.10 Calculate the expected return and standard deviation for the following weights: ABC (Wi) 90% 70% 50% 30% 10% XYZ (Wi) 10% 30% 50% 70% 90% Tp OP In addition, calculate the weights, expected return, and standard deviation for the minimum variance portfolio. Plot a graph which shows the combination line and if the risk free rate is 4%. draw in what the CML should look like. Identify the minimum variance portfolio and the optimal portfolio based on where "M" the market portfolio would lie

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